The Government could do a U-turn on allowing housing benefit to be paid direct to landlords.
Details of how the universal credit will be paid, when it comes into force in October 2013, have been alarming landlords, as it became clear that the housing element would always be paid to the tenant, regardless of arrears.
Currently, landlords have the right to request that Local Housing Allowance is paid to them if a tenant falls two or more months behind with the rent, or is declared vulnerable.
It looked as though this right would be scrapped under the new universal system, whereby the main benefits and tax credits are combined into a single payment.
But in answer to questions from Labour’s Stephen Timms, work and pensions minister Chris Grayling said the Department for Work and Pensions would have the capability to make payments to landlords from the start of universal credit.
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Comments
When I first heard the proposal, I thought 'what fool thought that one up'?
Politicians do not live in the real world. Most sensible people would agree that if cash is provided by the state for housing, then it should be spent on housing; therefore direct payments to the providers of this service makes sense.
The UK requires more social housing not less, and policy which makes this sector less appealing to landlords will impact its supply.
Common sense please, not ivory tower politics.
Patricia - You speak common sense with every sentence. Its a shame that those running the Country do not.
This is critical as far as keeping homelessness down and will cost NOTHING for the government to action. Let the tenant and landlord decide on day one of the tenancy who should get the benefit.
Please sign the petition (copy and paste)
http://epetitions.direct.gov.uk/petitions/35479
Im glad to see that some Common Sense is at last being talked in regard to Direct Landlord Payment.
In my experience Direct Payment to Landlords keeps many tenants in their homes. It is utter madness not to allow direct payment. Most of my tenants actually want this method of payment, but are told they cannot choose, even though Housing Association & Council tenants are able to choose. Why is it only the Private Sector Tenant who must be made responsible for their rent.
Also When Universal Credit starts I am very concerned that rents wont be paid on time or in full by some tenants. This will of course see much more homelessness.
Another thing, Why wait until a tenant is 8 weeks in arrears before Landlords get direct payment, this is taxpayers money therefore to make sure the money is used for paying the rent it should go to the Landlord as soon as the tenant withholds it.
This government has no concept of the real world.